SAN JOSE — A prominent San Jose housing tower that opened just a few years ago is up for sale at a time when the market for apartments has begun to wobble in the face of some economic uncertainties.
The Grad San Jose is on the sales block about four years after it was completed, according to a marketing brochure that JLL, a commercial real estate firm, is circulating.
The Grad San Jose, a 260-unit, 19-story student housing tower at 88 East San Carlos Street in downtown San Jose. (Google Maps)
The 19-story tower includes 260 student housing units that collectively contain 1,039 beds, according to a post on the website of Amcal, a real estate firm. Amcal specializes in the development of affordable housing for students and middle-class workers.
“The Grad offers investors a core student housing opportunity in the fastest growing urban market at a discount to replacement cost,” JLL stated in its marketing package.
The Grad San Jose, a 19-story, 260-unit student housing tower at 88 East San Carlos Street in downtown San Jose. (Google Maps)
The L-shaped housing tower was developed through an alliance of Amcal and Swenson, a veteran San Jose-based real estate developer and builder. The Amcal and Swenson team completed The Grad in 2020.
JLL described some of The Grad’s amenities as “resort-style” in quality, including a big swimming pool.
“With a three-quarter-acre amenity deck featuring a luxurious pool and jumbotron, as well as private study rooms on every residential floor, residents get the best of both worlds,” JLL states in the marketing package.
The deck offers a place to relax and unwind as well as a private area to study in a quiet setting, according to the sales package.
The student housing tower is being offered for sale at a time when the apartment market has turned a bit wobbly for multifamily real estate and a tricky economy for property investors.
In the wake of the spike in interest rates and inflation, Bay Area apartments are selling for somewhat less than what was the case before the surge in rates and consumer prices, based on a non-scientific survey of high-profile deals involving multifamily properties in the region.
After the jump in interest rates, the average price for apartment buildings that were sold was $520,700 per unit, based on selected Bay Area transactions that were completed in 2024 and in the final three months of 2023.
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Source:: The Mercury News – Entertainment
